Thursday, March 21, 2019

E.W. Scripps (SSP)

Planned acquisition positions it among “super” broadcasters.

The E.W. Scripps Co. serves audiences and businesses through a growing portfolio of television, print and digital media brands. After approval of its acquisition of two Granite Broadcasting stations later this year, Scripps will own 21 local television stations as well as daily newspapers in 13 markets across the United States

Michael Kupinski, DOR, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating. 

• Moves up the food
  chain. The recent planned acquisition for 8 television stations for
  $580 million, positions the company as among the top tier broadcasters covering
  30% of the nation’s television households. The cash flow multiple of 8.2 times
  our estimated 2020 cash flow is viewed as reasonable given the company’s
  significant platform expansion. 
• Scale is
  important. We believe that covering 30% plus of the nation’s TV
  households is important for enhanced negotiating power with cable and satellite
  providers for Retrans…
  

  
  
  
  
  

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NOTE: investment decisions should not be based upon the content of
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making any investment decision. 

Wednesday, March 20, 2019

E.W. Scripps (SSP)

Moves up the food chain.

The E.W. Scripps Co. serves audiences and businesses through a growing portfolio of television, print and digital media brands. After approval of its acquisition of two Granite Broadcasting stations later this year, Scripps will own 21 local television stations as well as daily newspapers in 13 markets across the United States

Michael Kupinski, DOR, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating. 

• Adds a nice mix
  of stations. The company announced plans to acquire 8 stations for a
  combined purchase price of $580 million, strengthening some of its current
  markets and enhancing its reach to near 30% of US TV households. We view the
  move favorably. Transaction expected to close late this year. 
• Multiple appears
  a little rich, but not worrisome. the company indicated that it will pay 8.1 times (net
  of tax benefits) on blended 2017/2018 EBITDA of $56 million. We believe that
  the multiple would be a little higher if based on 2018/2019 estimates. Notab…
  

  
  
  
  
  

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*Analyst
certification and important disclosures included in full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Wednesday, March 20, 2019

Tegna, Inc. (TGNA)

Acquisition indicates that the company is in the game.

TEGNA Inc., a media company, operates a portfolio of broadcast stations and digital sites; and provides marketing service solutions for businesses. The company operates 46 television stations in 38 markets that produce local programming, such as news, sports, and entertainment. Its marketing services business provides solutions for clients on multiple channels, including broadcast, online, and OTT. 

Michael Kupinski, DOR, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating. 

• Adds a complementary mix. Today, the company announced that it plans to acquire 11
  stations for a combined purchase price of $740 million, which adds a
  complementary mix of stations to some of its top markets, including four
  stations in presidential spending battleground states. We view the move
  favorably. The transaction is expected to close in late 3Q/early 4Q
  2019.   
• Attractive multiple. The company indicated that it will pay an
  attractive 6.7 times (net of tax savings and synergies) on blended 2018/2019 average EBITDA. The transacti…
  

  
  
  
  
  

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NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Monday, March 18, 2019

Tribune Publishing Company (TPCO)

Why Aren’t Investors Paying Attention To This Stock?

Tribune Publishing Co, formerly Tronc Inc is a print and online media company that publishes various newspapers and websites, such as The Chicago Tribune, Los Angeles Times, Baltimore Sun, San Diego Union-Tribune, and the Orlando Sentinel. The company creates and distribute content across its media portfolio, offering integrated marketing, media, and business services to consumers and advertisers, including digital solutions and advertising opportunities.

Michael Kupinski, DOR, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating. 

• First quarter and full year 2019
  guidance, much better than expected. Q1 revenue guidance is $235 million to $240
  million with adj. EBITDA of $18 million and $19 million, better than
  our $212.1 million and $6.5 million estimate, respectively. In addition, full
  year 2019 adj. EBITDA guidance of $100 million to $105 million is better
  than our $84.9 million estimate. The company will cycle through significant
  cost reductions, which largely began in Q4 2018.  
• Upwardly revised 2019 estimates. We raised our Q1 and full year 2019 estimates. Our first
  quarter revenue estimate has been raised from $212.1 million to $235.4 million
  and our adjusted EBITDA (cash flow) estimate has been raised fr… 
  

  
  
  
  
  

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NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Friday, March 15, 2019

Harte-Hanks (HHS)

A Management Team Eager To Tackle The Tasks At Hand.

Harte-Hanks is a marketing services company that provides multichannel marketing solutions as well as consulting, data analytics, and strategic assessment. The company’s offerings focus on business-to-business, retail, finance, and automotive segments through digital, social, mobile, and print media offerings. 

Michael Kupinski, DOR, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating.

• Q4 results anticipated. The Q4 revenue decline was slightly better than expected, providing
  hopeful signs that its businesses are stabilizing. Revenues were $70.2 million
  versus our $68.5 million estimate. Adjusted EBITDA was in line with a loss of
  $1.57 million versus our loss estimate of $1.50 million. 
• Adequate liquidity. The company received a tax refund of $4.6 million in
  February, 2019. The company is expected to receive a second $9 million refund
  in the second half 2019. Combined with current cash on hand of $20.6 million,
  the company appears to have ade…

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certification and important disclosures included in full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Thursday, March 14, 2019

Tribune Publishing Company (TPCO)

Behind The Curtain Of The Company’s Surprisingly Good 2019 Guidance.

Tribune Publishing Co, formerly Tronc Inc is a print and online media company that publishes various newspapers and websites, such as The Chicago Tribune, Los Angeles Times, Baltimore Sun, San Diego Union-Tribune, and the Orlando Sentinel. The company creates and distribute content across its media portfolio, offering integrated marketing, media, and business services to consumers and advertisers, including digital solutions and advertising opportunities.

Michael Kupinski, DOR, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating.

 

• Q4 surprises on
  the upside from previously lowered expectations. While revenues were a little softer than expected at
  $283.5 million versus our $286.6 million estimate, adjusted EBITDA was better,
  $46.5 million versus our $40.3 million estimate. 
• Encouraging print
  ad trends. The company indicated that print ad trends reflected
  significant sequential improvement from down 18% in Q3 to a more moderate down
  12% in Q4. The company anticipates that print ad trends should show moderate as
  it has largely cycl… 

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NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Thursday, March 14, 2019

Townsquare Media (TSQ)

What Will It Take For The Shares To Break Out?

Townsquare Media Inc is an entertainment and media company offering digital marketing solutions in the United States and Canada. It owns and operates radio stations, social media properties focusing the small and mid-cap companies. Services offered to the clients include live events, local advertising, digital advertising, e-commerce offerings, few others.

Michael Kupinski, DOR, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating.

• Over-delivers on Q4.  Revenues were better than expected at $108.9 million versus our $105.1 million estimate, on the strength of its Digital businesses. Operating cash flow (adj. EBITDA) was better than expected at $23.9 million versus our $23.2 million estimate. 
• Provides favorable guidance. The company guided Q1 revenue between $92 million and $94 million (better than our $89.3 million estimate) and adj. EBITDA of $17.5 million to $18.5 million (better than our $17.0 million estimate). Full year revenue guidance of $445 million to $455 million is better than our $428.2 million estimate and adj. EBITDA guida… 

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*Analyst certification and important disclosures included in full report.  NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision.